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RPC looks to grow business after first-quarter revenue boost

RPC has said it is on course to post improved revenue figures in the first quarter of the financial year, despite the impact of record polymer prices.

The plastic packaging giant’s interim management statement said that revenue in the first quarter of 2010/11 was higher than last year due to higher selling prices and an increase in sales volumes.

According to RPC, the higher selling prices were due to the company passing the increased cost of polymers on to customers.

Volumes were up thanks, in part, to the cosmetics and personal care sectors, which had been affected by customer de-stocking in 2009.

The group’s operating profit, before restructuring and impairment charges, was "encouraging and benefited from a lower structural base and higher volumes".

Record polymer prices
RPC reported that gross margins were under pressure due to polymer prices being at a record high.

"It is encouraging to see that the operating profit level achieved so far is in line with our expectations despite record polymer price levels," said RPC chief executive Ron Marsh.

"Underlying activity levels appear to be improving with customers more active in developing new packaging designs."

"With a much improved cost base and a robust financial position, the group is progressively turning its attention to achieving sustainable growth," said Marsh.

The group also reported that its RPC 2010 programme was in its final phase.

Workforce reductions at its Marolles site in France and restructuring negotiations at the Dutch thermoforming site have now been concluded.

The interim report follows RPC’s annual results published last month. The company turned a pre-tax loss into a £19.2m profit despite falling sales.